BEIJING: Chinese stocks sank again on Tuesday, despite a rebound in markets elsewhere in Asia, as investors despaired at the lack of policy action from Beijing in response to recent data suggesting the downturn in the world’s second-largest economy is deepening.
Major Chinese stock indexes tumbled more than 6 percent in early trading, hitting their lowest levels in 8 months, following their more than 8 percent plunge on Monday that sent shockwaves through global financial markets. [MKTS/GLOB]
China, a key driver of the world economy, has overtaken Greece at the top of the worry list of global investors, who fret its economy is growing at a much slower pace than Beijing’s 7 percent target for 2015.
“Global investors are cannibalizing each other. Calling it a market disaster is not an overstatement,” said Zhou Lin, an analyst at Huatai Securities.
“The mood of panic is dominating the market … And I don’t see any signs of meaningful government intervention.”
The CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen finished the morning session down 3.9 percent, while the Shanghai Composite Index .SSEC fell 4.3 percent. [.SS]
After the turmoil in China rocked world equity and commodity markets on Monday, policymakers elsewhere in Asia sought to soothe fears about the broader impact on the global economy.
“I think it’s important that people don’t hyperventilate about these type of things,” said Australian Prime Minister Tony Abbott, whose country is heavily exposed to China, the biggest consumer of its commodity exports.
